OCBC, Ping An to provide two-way wealth services in China’s Greater Bay Area

SINGAPORE (THE BUSINESS TIMES) – OCBC on Tuesday (Oct 19) announced that its Hong Kong subsidiary, OCBC Wing Hang Bank, will partner China’s Ping An Bank to provide two-way wealth management services in the Greater Bay Area (GBA).

This tie-up comes under China’s new Wealth Management Connect scheme. Chinese and Hong Kong regulators had in September announced the roll-out of a cross-boundary scheme to allow two-way purchase of approved wealth management products across China’s GBA.

Under the scheme, residents in the nine mainland China cities in the GBA such as Guangzhou, Shenzhen and Zhuhai can purchase wealth management products offered by providers in Hong Kong and Macau (south-bound scheme), while those in Hong Kong and Macau can buy products by providers based in mainland China cities (north-bound scheme).

In a statement, OCBC said the partnership between OCBC Wing Hang and Ping An will see both banks provide quality and diversified financial services to their GBA customers.

Ping An is among the top banks in China with a network of more than 300 branches in the GBA and over 107 million retail customers.

Eligible Ping An customers can open investment accounts with OCBC Wing Hang and purchase qualified wealth management products covering global, Asia-Pacific, mainland China and US markets.

Likewise, eligible OCBC Wing Hang customers can do the same with Ping An to purchase qualified wealth management products from mainland China.

“The Wealth Management Connect scheme will be a game-changer and opens up a whole new segment of customers for us,” said Helen Wong, OCBC group chief executive officer.

The scheme will facilitate up to 300 billion yuan (S$63 billion) in total investment flows and generate about 3.2 billion yuan in annual wealth fees for banks.

It is seen as a test-bed for the gradual relaxation of China’s tight capital controls and could eventually be extended to the whole of China.

“Our partnership with Ping An, combined with our strong wealth management capabilities regionally as well as our significant branch presence in the GBA, enables us to offer China customers a wealth of diversified investment opportunities through our twin hubs of Singapore and Hong Kong,” said Wong.

The GBA is a cluster of 11 high-growth cities in southern China which includes Hong Kong and Macau. It is also the 12th largest economic entity in the world.

Ivy Au-Yeung, OCBC Wing Hang chief executive, said: “This partnership not only further expands customers’ investment channels but also advances financial cooperation between Hong Kong, Macau and China. This in turn will fuel business growth for both banks.”